In addition, with a heightened emphasis on decarbonising portfolios to “enhance future asset attributes”, the analysts are expecting S-REITs to shift towards more active recycling to improve portfolio yields and extend their growth trajectory.
In their March 28 sector report, DBS Group Research analysts Derek Tan, Rachel Tan, Dale Lai and Geraldine Wong note that more Singapore REITs (S-REITs) are now looking to reassess their portfolio composition for several reasons.
One of them is the increasing demand for capital to maintain ageing assets in a high interest-rate environment after close to a decade of growth via acquisitions that were made when interest rates were low.
